Brussels, Dusseldorf The lobbyists of the internal combustion engine in Brussels had fought for a long time. On Wednesday evening, the Parliament of the European Union probably sealed their defeat. The committee has decided to ban the sale of vehicles with combustion engines from 2035. It is considered likely that the member states will agree.
The combustion lobbyists wanted at least so-called e-fuels, synthetically produced CO2-neutral fuels, to be included in the CO2 fleet consumption. This would have prevented the car industry from completely banning combustion engines. But Parliament also put a stop to e-fuels.
This causes unrest in the industry. Hardly any car manufacturer expected that combustion engines would still be allowed to be registered in Europe after 2035. Mercedes expressly welcomes the decision: “By 2030, we are ready to become fully electric wherever market conditions allow,” said the head of the group’s external relations department, Eckart von Klaeden, on Thursday of the German Press Agency.
But some manufacturers, such as Porsche, have exposed themselves to e-fuels. The sports car manufacturer is taking a special path within the VW Group. In Chile, the VW subsidiary is investing around half a billion euros in the construction of a plant for the production of synthetic fuels.
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Porsche’s reaction was correspondingly restrained. E-fuels are still seen as a useful addition to CO2-neutral mobility. Porsche is pursuing a clear drive strategy. “We rely on a trio of electric models, plug-in hybrids and petrol engines,” says the carmaker.
However, when asked whether a negative vote by the EU was taken into account in the investment plans in Chile, Porsche did not want to answer. Stefan Bratzel, Director of the Center of Automotive Management (CAM) at the Bergisch Gladbach University of Applied Sciences, expects Porsche’s strategy to face headwinds. “I assume that after the decision of the EU Parliament, the commitment to e-fuel will be more difficult for Porsche. It will not be enough just to supply car customers with synthetic fuels,” says Bratzel. Porsche will be more dependent on demand from the maritime and aviation sectors, where electrification of the drive has not yet been possible.
Hildegard Müller, President of the Association of the Automotive Industry (VDA), is clearer than Porsche. With its decision, the EU Parliament made a “decision against the citizens, against the market, against innovations and against modern technologies,” says Müller. From the point of view of the VDA, e-fuels are needed to achieve the climate goals.
CAM Director Bratzel is not surprised by Müller’s statements. “The automotive industry sent the VDA ahead on the subject of e-fuels. But that went wrong again,” says the car expert. If the EU states follow Parliament’s vote, the “back door” that the e-fuel representatives had hoped for will also be closed.
Suppliers with no alternative have their backs to the wall
Suppliers in particular relied on this back door. Some small and medium-sized suppliers in Germany are still at the beginning of the transformation. A transition phase with e-fuel drives would have given these companies more time to transform. It is now clear that from 2035 it will no longer make economic sense to manufacture car components for combustion engines in Europe.
Bratzel expects an earlier withdrawal. “I assume that suppliers will stop producing components for combustion engines in Europe well before 2035,” he says. Suppliers who still have no alternative business field to the combustion engine would have their backs to the wall after the e-fuel decision.
The CDU MEP Christian Ehler is therefore critical of the decision. “I find it difficult that half a parliament applauds when it has just risked hundreds of thousands of jobs,” he told the Handelsblatt.
Even larger German suppliers like ZF are not enthusiastic about the decision of the parliament. “Especially for the existing fleet, CO2 reduction is only possible with e-fuels, which is why we see this as an interesting addition and transitional solution to electrification,” the foundation group said.
Among other things, ZF supplies car manufacturers with special transmissions for plug-in hybrids. Without the e-fuel exemption, however, plug-in hybrids are now also subject to the combustion engine ban.
The EU Council of Ministers can still overturn the ban on combustion engines
The vote of the European Parliament is clear. But there is still one last hope for combustion engines: in the EU, laws must be passed by both Parliament and the Council. The governments of the member states are represented in the Council, and Environment Minister Steffi Lemke (Greens) speaks for Germany. She made it clear that Germany is behind the combustion engine exit.
But there are also voices against the ban from 2035 in the Council of Member States, such as the Czech Republic, Slovakia and Hungary, where the supplier industry is strong. The rules stipulate that the council must agree on a draft law by a qualified majority. 15 of the 27 EU countries must agree and together represent at least 65 percent of the EU population.
However, it is considered likely that this majority will be achieved. Then the subsequent trilogue negotiations, in which Parliament, the Council and the EU Commission have to agree on a final version of the law, should no longer bring any surprises.
Transport & Environment, an interest group for sustainable mobility, welcomes the decision of the EU Parliament. The association calls on the EU environment ministers to follow Parliament’s vote on synthetic fuels. “Allowing synthetic fuels in passenger cars would be an expensive and wasteful detour,” says T&E’s Alex Keynes.
More: So that the combustion engine survives – Porsche makes a risky bet on synthetic gasoline.